Production Grows, Accidents Down

Q: What were the main contributors to Fresnillo's strong performance in 2016?

A: Like all miners, we were helped by external factors such as the devaluation of the peso that enabled us to improve the internal cost structure. But we also managed to lower operational costs at several of our mines, which generated savings of US$25 million across our portfolio. Moreover, we were boosted by the increase in production at our mines, particularly at La Herradura, Nochebuena and Saucito, while we also brought the first phase of commercial production at San Julian online. All told, 2016 was the second-best year for Fresnillo since the company made its listing on the London Stock Exchange nine years ago.

Q: What actions are you taking to reduce fatality rates at your mines?

A: This is the most important challenge Fresnillo is facing and we are disappointed that we have not reached our objective of zero fatalities, which is the company’s primary goal. We are trialing a new, in-depth safety system in the Saucito mine that we hope will help us achieve our zero-fatality goal. We already have safety protocols and equipment of the highest standard but we need to focus on educating our staff and contractors. We are determined to increase awareness and risk identification throughout the company. If we succeed, this system will be implemented across all of our mines.